The average daily rate at Hyatt Hotels Corp. properties during
the second quarter increased by 2.1 percent year over year, with higher
increases in the Americas offset by rate declines in the other global regions
where the company operates.
In the Americas, ADR increased 4.5 percent in the
full-service tier and 4.1 percent in the select-service tier. Occupancy was up
slightly in both tiers from the already high levels reported the year prior.
Full-service occupancy increased 0.7 percentage points to 78.2 percent, and
select-service occupancy increased 1.5 percentage points to 80.1 percent.
Hyatt president and CEO Mark Hoplamazian indicated he
expected U.S. hotels to see "continued healthy levels of transient demand"
and "further rate growth." Transient room nights for the quarter were
up 2.7 percent at full-service hotels, and transient room revenues were up 6.9
percent.
Group demand growth was modest, however. While group revenue
at U.S. full-service hotels was up 5.2 percent in the quarter, room nights were
up 0.4 percent. Group ADR was up 4.8 percent in the quarter, and Hoplamazian during
a Hyatt earnings conference call Wednesday said that food and beverage revenues
for the quarter also increased.
Hoplamazian also noted that "long-term dynamics remain
good" for both corporate and association group demand.
In the Asia/Pacific region, Hyatt full-service ADR declined 3.9
percent during the quarter, and occupancy increased 0.2 percentage points to
67.3 percent. Hoplamazian attributed the region's room revenue decline to a
number of factors within China: weaker overall economic activity, a number of
key hotels undergoing renovations and such short-term issues as the bird flu.
Excluding China, room revenues were up in the region, driven primarily by
Japan, and performance within Southern China also is positive, he said.
In Europe, Africa, the Middle East and Southwest Asia,
full-service ADR declined by 3.2 percent, but occupancy increased by 5.4
percentage points to 66.5 percent. Hoplamazian said that demand in India, much
like China, would be "volatile" in the short-term.
Hoplamazian also said that Hyatt plans to spend about $250
million in capital on its hotels this year, including $80 million on new
construction projects. During the quarter, Hyatt added seven franchised
properties in the United States; one managed Grand Hyatt in Shenyang, China;
four managed properties in France; and four managed properties in India.
Hyatt's net income for the quarter was $112 million, up from
$39 million in the second quarter of 2012.